Tesoro finishes purchase of BP refineries at Mandan, Salt Lake City
By the OGJ Online Staff
HOUSTON, Sept. 7 -- Tesoro Petroleum Corp. said Thursday it completed acquisition of BP PLC's refining and marketing assets at Salt Lake City, Utah, and Mandan, ND.
Closure on a related North Dakota crude gathering system will be handled separately, pending federal regulatory approval, and is expected around Nov. 1.
Tesoro said the purchase was financed with debt and is expected to be accretive to earnings, starting in the third quarter. Lehman Brothers served as Tesoro's financial advisor.
The company said in July it would buy the BP assets for $677 million, excluding working capital (OGJ Online, July 17, 2001).
BP's 55,000-b/d Salt Lake City refinery is the largest of four refineries in Utah. The 60,000-b/d Mandan refinery, near Bismarck, is the only refinery in North Dakota.
The deal included associated North Dakota crude and product pipelines, bulk storage, eight product distribution terminals, and 45 BP gasoline stations in Utah and North Dakota.
The acquisition brings Tesoro to five refineries with a combined throughput capacity of 390,000 b/d. In addition, Tesoro's branded retail stations will expand to 640 locations.
Distribution terminals included in the agreement are in Salt Lake City; Boise and Burley, Idaho; Mandan and Jamestown, ND; and Moorhead, Sauk Centre, and the Twin Cities area in Minnesota.
